How does Labcorp Holdings (LH) make money?

Labcorp Holdings (LH) generates revenue primarily from LabCorp Diagnostics, which accounted for 93.4% of total revenue in TTM through Q1 2026. The company reported $14.1B in revenue and converted 6.7% of it into net profit, equivalent to roughly $942M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Labcorp Holdings (LH)?

Labcorp Holdings (LH) reported a gross profit margin of 27.8% in TTM through Q1 2026, equivalent to $3.93B in gross profit on $14.1B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Labcorp Holdings (LH)?

Labcorp Holdings (LH) reported an operating profit margin of 11% in TTM through Q1 2026, equivalent to $1.56B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Labcorp Holdings (LH)?

Labcorp Holdings (LH) reported a net profit margin of 6.7% in TTM through Q1 2026, equivalent to $942M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Labcorp Holdings (LH) profitable?

Yes. Labcorp Holdings (LH) reported $942M in net income for TTM through Q1 2026, with a net profit margin of 6.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Labcorp Holdings (LH) spend on capital expenditures?

Labcorp Holdings (LH) spent $430M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 3.0% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Labcorp Holdings (LH) generate?

Labcorp Holdings (LH) generated $1.38B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 9.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Labcorp Holdings (LH)?

Labcorp Holdings (LH) had an effective tax rate of 18.2% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Labcorp Holdings (LH)?

Labcorp Holdings (LH) reports revenue across 2 reportable product segments, led by LabCorp Diagnostics at 93.4% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Labcorp Holdings Makes Money: 2026 Visual Revenue Map

Labcorp Holdings (LH) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 4, 2026).

Labcorp Holdings discloses geographic revenue only in annual filings. to view the full breakdown.

Labcorp Holdings (LH) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Labcorp Holdings (LH), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
LabCorp Diagnostics	$13.2B	93.4%
Biopharma Laboratory Services	$937M	6.6%
Total	$14.1B	100%

LabCorp Diagnostics$13.2B
Biopharma Laboratory Services$937M
Total$14.1B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Labcorp Holdings (LH) reports revenue across 2 reportable product segments; the largest segment was LabCorp Diagnostics at 93.4%, followed by Biopharma Laboratory Services (6.6%).

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